Matic Price Analysis: Why Polygon(MATIC) Could Correct More 17%

A rising parallel channel pattern is leading this uptrend in the MATIC/USD chart. The price is resonating between the key levels of this pattern and is currently going through a usual correction phase, which hints the price will drop back to the support trendline. Watch these levels that can support or obstruct this retracement

Key technical points:

• The MATIC coin price obtained strong support from the 100 EMA line
• The intraday trading volume in the MATIC coin is $1.8 Billion.

Source- MATIC/USD chart by Tradingview

As mentioned in my previous article on MATIC/USD, the coin price respects the levels of a rising parallel channel pattern in the daily time frame chart. The price was recently rejected from the overhead resistance trendline with an evening start pattern and has set a course to the bottom trendline.

So far, this correction phase has caused a negative 18% deduction on the MATIC coin and is still halfway through. However, on December 13th, the price gave a decisive breakdown from the strong support of the $2 mark and is currently retesting this level for proper resistance.

The crucial EMAs (20, 50, 100, and 200) show a bullish alignment in this chart. Moreover, the 100 EMA provides excellent dynamic support to the coin price.

The daily Relative Strength Index (51) steadily approaches the bearish zone as its line hovers just above the neutral line. Moreover, the RSI chart also shows a bearish divergence for the new higher high in price, indicating some weakness among the buyers.

MATIC/USD 4-hour Time Frame Chart

Source- MATIC/USD chart by Tradingview

This lower time frame chart displays several higher price rejection candles at the new resistance of $2. Sustaining below this resistance, the MATIC coin price would drop to the bottom support trendline, i.e., 17% lower.

The technical chart suggests the nearest resistance at $2, followed by $2.23. As for the opposite end, the support levels are $1.78 and $1.6.6